In August, the wording was that: The Japanese economy is recovering at a moderate pace, while the effects caused from the US trade policies and so on are seen in some areas.

In September, that is changed ever so slightly to: The Japanese economy is recovering at a moderate pace, while the effects caused from the US trade policies are seen mainly in the automotive industry.

That reflects their concerns on auto tariffs by the US more than anything else. Besides that, the report shows a better view on the outlook for consumer spending as the government notes that private consumption is showing movements of picking up. That’s the first time that they raised the view on that since August 2024.

At the same time, they also lifted their view on capital spending since March 2024 noting that it is seen picking up moderately.

The full report can be found here.